Ex-Watergate Prosecutor Appointed To Probe Caesars' Bankruptcy

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Summary

A bankruptcy judge appointed an ex-Watergate prosecutor to examine inter-company asset transfers at Caesars.

Caesars' main operating subsidiary, CEOC, transferred assets to Caesars Growth Partners in October 2013 and May 2014.

CEOC was placed into bankruptcy in January 2015. I estimate its fair value to be far less than its $18 billion debt load.

If the asset transfers were deemed to rob debt holders, a prosecutor may require the transactions to be unwound.